Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and loan. The original balance of your mortgage was $145,000 and was obtained five years ago with monthly payments at 10 percent interest. The loan was to be fully amortized over 30 years. Required: a. What should SMPC pay if it wants an 11 percent return? b. What is the balance of the original loan after five additional years (10 years from origination)? Complete this question by entering your answers in the tabs below. Required A Required B What is the balance of the original loan after five additional years (10 years from origination)? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Payment < Required A Sequired 15
Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and loan. The original balance of your mortgage was $145,000 and was obtained five years ago with monthly payments at 10 percent interest. The loan was to be fully amortized over 30 years. Required: a. What should SMPC pay if it wants an 11 percent return? b. What is the balance of the original loan after five additional years (10 years from origination)? Complete this question by entering your answers in the tabs below. Required A Required B What is the balance of the original loan after five additional years (10 years from origination)? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Payment < Required A Sequired 15
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 4FPE: Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five...
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